March 3, 2025

Stop Making these $100,000 Mistakes Part 2

Stop Making these $100,000 Mistakes Part 2

In this follow-up to our popular "Stop Making these $100,000 Mistakes" episode, Michael Barbarita and Chuki Obiyo dive deeper into three more costly mistakes business owners make. Discover how undervaluing yourself, not knowing your numbers, and...

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In this follow-up to our popular "Stop Making these $100,000 Mistakes" episode, Michael Barbarita and Chuki Obiyo dive deeper into three more costly mistakes business owners make. Discover how undervaluing yourself, not knowing your numbers, and misunderstanding the buyer's journey could be silently draining $100,000+ from your business each year. You'll learn actionable strategies to correct these mistakes and transform them into profit opportunities your competition isn't seeing.

Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions expressed in the following show are

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solely those of the hosts and their guests, and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicitor implies shall be extended to W FOURCY Radio

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or its employees are affiliates. Any questions or comments should

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be directed to those show hosts. Thank you for choosing

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W FOURCY Radio.

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Welcome to Powerful Business Strategies, where you will find out

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that everything you have ever learned about growing your business

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is wrong. Finally, a show where you'll learn the right

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way to grow your business by learning business and financial

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strategies that your competition isn't doing. And now here's your host,

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President of Next Step CFO Michael Barbarita, and joining Michael

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for today's show as an executive moderator is Chooky Obia.

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We're welcome to Powerful Business Strategies. You know, the reason

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why you don't hear that more energized voice of Chucky

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Obio welcoming you all to the show is because Chucky's

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wife and Chucky recently welcomed their first baby, chelseydese Obio,

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to the world, So congratulations to Chucky and his wife,

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and Chucky will be on leave for a while in

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the meantime. My name is Michael Barber Rita, President of

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NeXTSTEP CFO, and next Step CFO is a fractional CFO

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and strategic implementation firm. Business owners hire us the double

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and triple their profit through implementing business and financial strategies

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that their competition isn't doing. Our vision is to ensure

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overwhelmed business owners achieve the time, freedom and consistent profits

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to build a legacy and the life the desire and

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our mission is dedicated to guiding those small business owners

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to leveraging their time, exploding their profits, and building a

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meaningful legacy. So the show powerful business strategies in our

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book of the same name is a step toward accomplishing

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that vision and mission. Chocky and I are both affiliated

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with a number of different organizations. Chocky currently serves as

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the managing director of business development for Better Price, a

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global business focused law firm, and in addition to that,

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Cheecky and I collaborate to moderate business roundtables around the

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country and around the world and document those insights as

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part of our book Powerful Business Strategies. But please note

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that the views expressed on this show are our personal

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views based on our own successful experiences, and it's something

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that i'd like to share that I've announced previously. If

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you have a business problem that you'd like us to answer,

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or a question, a business question or a strategy that

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you'd like to ask about, please email us at ask

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at NEXTSTEPCFO dot net. Now it doesn't matter what the

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business problem is or what the question is, and we

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will answer it for you. And there are a couple

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things that we ask them. One, please state whether it

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is something we can answer on the air or if

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it's confidential. Of course, if it's confidential, we won't put

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it on the air. And number two, please provide your

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phone number because business problems can be complex and so

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we might need a little bit more context or clarity.

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That email address again is ask at NEXTSTEPCFO dot net.

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And I want to point out that we've had a

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couple of people with questions that we were able to answer,

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but they did request confidentiality, which we will always honor.

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You know, we business owners wake up each morning, most

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of us think about our goals, our struggles, our own journey.

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We make lists of what we need to accomplish, worry

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about our deadlines, and focus on our personal growth. And

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while self improvement and personal growth is very important, I

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want to challenge you today to think bigger, to think

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beyond yourself, because here's the truth that many of us overlook.

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Every skill you're developing, every obstacle you're overcoming, every lesson

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you're learning, it's not just for you. The universe has

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a bigger plan for your talents. Think about it. Why

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were you given your specific abilities? Why do you have

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your unique combination of experiences. Why do you feel drawn

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to certain paths while others don't. The answer is deceptively simple,

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yet very profound. You were built to be the solution

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to someone else's problem. Your struggles are preparing you to

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understand someone else's pain. Your victories are teaching you how

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to guide others to their own success. Right now as

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I speak, someone out there is facing a challenge that

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only your unique perspective can help them overcome. You are

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the prescription for someone's pain. You know. Every morning, entrepreneurs

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across the country wake up facing the same question is

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it all worth it? The late nights, the constant pressure,

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the never ending challenges. Sometimes it feels like pushing a

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boulder uphill. But here's what separates extraordinary business owners from

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the rest. They understand that challenges aren't obstacles. They're opportunities

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disguised as problems. Every successful business owner I've ever worked

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with didn't succeed because they avoided mistakes. They succeeded because

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they learned to convert those mistakes into stepping stones. Today,

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we're continuing our journey into the costly mistakes that could

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be draining one hundred thousand dollars or more from your business.

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Not to make you feel bad about these mistakes, but

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to show you how to turn them into your greatest

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competitive advantages. Because when you fix what your competition doesn't

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even realize is broken, and breakthrough and success really happens.

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So today we're continuing our explanation of one hundred thousand

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dollars mistakes that could be silently draining profits from your business.

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Last week, we covered three major mistakes not speaking your

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customer's language, not doing things in the right or doing

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things in the wrong order, and having no way to

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separate yourself from your competitors. The response was overwhelming, so

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many of you reached out to share how identifying these

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mistakes has already begun to improve your business. So today

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we're going to dive into three more critical mistakes that

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could be causing you one hundred thousand dollars or more

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each year. First, we'll explore how undervaluing yourself and your

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services is creating a profit leak that most business owners

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don't even realize. We'll show you a conintuitive approach to

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pricing that actually attracts better clients while increasing your profit margins. Second,

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we'll tackle one of the most yet well most common,

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yet devastating mistakes, not knowing your numbers. Now, most business

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owners are flying blind when it comes to their financial metrics,

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making decisions based on good feeling rather than concrete data.

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We reveal the vital five numbers every business owner should

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know and every business owner must go and I understand

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how understanding these numbers can dramatically improve your decision making.

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And Third, will uncover how not understanding the bias journey

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is causing you to leave ninety seven percent of your

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potential market untapped. We'll show you how to capture prospects

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at every stage of their buying decision, not just the

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small one to three percent of people who are ready

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to buy the day. And these mistakes on theory, they're

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real issues. They're real issues that we've encountered working with

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hundreds of businesses across dozens of industries. And here's the

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good news. Like we said last week, they're completely fixable.

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These mistakes are completely fixable. What's truly exciting is that

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when you correct these mistakes, you're not just saving money,

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you're creating new opportunities for growth that competition is even

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aware of. And this is this is about turning problems

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into profit centers. So grab that pen and paper, because

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you're about to discover why everything you've ever learned about

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growing your business is wrong, and more importantly, what to

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do about it. Remember, if you're driving, don't grab that

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pen and paper. Listen to the recording at Powerful business

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Strategies dot com. So, as I mentioned, we talked about

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three major mistakes, so let's dive in. We've already talked

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about the three major mistakes last week, so let's dive

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into that fourth major mistake, costing businesses one hundred thousand

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dollars more, and that's undervaluing yourself and your services. This

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is perhaps the most persuasive mistake I see across, pervasive

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mistake that I see across nearly every industry and business size.

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And here's a startling fact. According to our research, over

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eighty percent of businesses are underpricing their products or services

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by at least five to twenty percent. So for a

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business doing a half a million in annual revenue, that's

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twenty five thousand to one hundred thousand dollars right there.

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So let me share a recent example that really drives

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this home. A consultant in the manufacturing space was charging

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one hundred and twenty five dollars an hour for his services.

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This rate was considered to be the industry's standard, and

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it was what everybody else was charging. And when he

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analyzed the value he was delivering to his clients, he

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discovered his that he was regularly saving them between fifteen

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one hundred and fifty thousand operational cost. Yet he was

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pricing his services based on his time, not the value

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that he delivered. And this is where most business owners

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are wrong. They price based on the cost or their

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time rather than the value they create for their customers.

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It's a fundamental misunderstanding of how pricing actually works. So

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let me be crystal clear about this. Customers don't say

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no to you, They say no to themselves. People only

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say yes to themselves when the value they believe they're

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getting exceeds the price that they're paying. The key word

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here is believed, because it's about perceived value, not just

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the actual value. And this is why demonstrating value is

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so critical to your pricing strategy. Most of the business

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owners simply state their prices without properly building the value first.

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When you've failed to build value, twce becomes the only consideration.

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So here's a framework for building value that allows you

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to charge premium prices. First, identify and quantify the specific

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problems that your product or service solves. Second, demonstrate the

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cost of those problems going unsolved. Third, show the unique

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approach you take to solving those problems. Fourth, provide proof

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that your approach works. And five only then should you

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present your price, which should now seem not only reasonable,

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but a bargain in comparison the value that you're delivering.

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And so let me give you a real life example

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of how this works. A marketing agency was charging three

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thousand a month for their services, right in line with

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their competitors. But by implementing this value building framework, they

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were able to increase their prices to five thousand a

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month while actually in increasing their closing rate. Wow, how

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do they do that? Well? They stop talking about deliveris

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like deliverables like social media management and email marketing, and

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instead they focused on business outcomes that they created, like

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we help manufacturing companies generate between fifteen and twenty five

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qualified leads per month with an average client value of

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twelve thousand dollars. Suddenly, five thousand seem like a value

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compared to the sorry, it seemed like a bargain compared

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to the value that they were delivering, and of course

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they were able to prove that in their presentation. And

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this brings me to an important point about pricing psychology.

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There's a concept called price anchoring that dramatically affects how

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people perceive your prices. When you present a price without context,

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people will compare it to whatever reference point they have

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available and usually guess what it's their competitives prices. But

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when you control the reference point by establishing the value,

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you deliver First, you change the entire dynamic, the entire

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context of the price discussion. For example, if you're a

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business coach, let's say and you say my coaching program

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is ten thousand dollars, Well, that might seem expensive in isolation,

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but if you first established that your typical clientcy is

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a fifty thousand dollars increase in profit after working with you, well,

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suddenly ten thousand seems not only like a reasonable investment,

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but like a bargain. We're getting a question from a listener, Michael.

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Many business owners worry that raising their prices will drive

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away customers. Oh yeah, how do you address that concern? Well,

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that is a common fear. But here's what's interesting. When

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you raise your prices strategically, you typically lose the clients

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you don't want to anyway, The price sensitive clients who

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demand the most time, cause the most headaches. Theyre usually

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the first to go, and they're replaced by clients and

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customers who value quality, results and expertise. Clients and customers

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who are actually easy to work with and more appreciative

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of what you do. Remember, your goal is it to

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work with everyone, is to work with the right people

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who value what you deliver. And here's the other thing.

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If you were with NeXTSTEP CFO, we have a spreadsheet

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that will show you how many customers you can afford

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to lose and maintain the same profit you had before

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the price increase. Many business owners overcome their fear of

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driving away customers when they understand how many customers they

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can afford to lose. So here's another critical aspect of

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value based pricing. Different customers perceive value differently. This is

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why a one size fits all pricing is almost always

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a mistake. So instead, consider implementing tiered pricing options that

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allowed customers to self select based on their perception of value.

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Some people call this a good, better best model. A

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software company implemented this strategy by offering three different tiers

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of service. What was a basic package, which was their

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good nineteen ninety seven per year, a Premium package which

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was there better at three thousand, nine ninety seven per year,

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and their best was a VIP package at seven nine

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and ninety seven dollars per year. Before this change, they

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were offering only one option at twenty five hundred dollars.

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After implementing this tiered pricing, their average sale increased of

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forty two hundred dollars, a sixty eight percent increase. Why Well,

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because different customers value different things, and tiered pricing allows

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them to choose based on what they value the most.

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But here's where most businesses make another costly pricing mistake.

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They focus only on the price itself and ignore the

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payment terms. The way you structure your payment terms can

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have a massive impact on both your close rate and

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your cash flow. There was a business consultant who was

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charging twelve thousand dollars for a six month engagement, all

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due upfront. By simply changing to a monthly plan of

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twenty two hundred dollars a month, which is slightly higher

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than the total of twelve thousand dollars spread out over

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the six months, they increase their clothes rate by thirty

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five percent. Same same service, same value, just different payment terms.

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The bottom line is this undervaluing yourself isn't just about

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leaving money on the table with each sale. It's a

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compounding negative effect on your entire business. It attracts price

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sensitive clients who tend to be more demanding. It forces

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you to take on more clients to make the same profit.

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It creates cash flow problems that limit your ability to

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invest in growth. It positions you as a commodity rather

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than a premium provider, and it creates a vicious cycle

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where you feel you need to work harder for less money.

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Here's a question from a listener, Michael, what's the first

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step of business owners should take if they suspect they're

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undervaluing their services? The question The first step, Well, that's

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what I call the first step is what I call

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a value on it. You make a list of the

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specific outcomes that your product or service creates for your customer,

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and you'd be as detailed and quantifiable as possible. Sample,

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don't just say it saves time, say it saves five

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hours per week. And don't say increases revenue, say increases

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revenue by fifteen to twenty percent. Then calculate the monetary

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value of these outcomes, and once you see the actual

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value creating, you'll have the confidence the price accordingly. Another

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question from a listener, what about businesses in highly competitive

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markets where customers seem extremely priced sensitive, how can they

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implement value based pricing? Well, that's where your position of

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market dominance becomes absolutely crucial. So instead of competing in

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the same market space, as everyone else cover a unique niche.

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For example, instead of being just another accountant in a

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crowded market, become the account who specializes in helping e

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commerce businesses reduce their tax liability by twenty five percent

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or more. Suddenly you're not competing with every account You're

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the specialist with specific expertise and proven results. This allows

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you to command much higher prices, even in supposedly high

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sensitive markets. So before I continue this discussion, we're going

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to take a ninety second break. Hey, their business owners,

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let me ask you something. Are you tied of blending

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in with your competitors, frustrated with slow growth and slim margins?

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Well, I've got news for you.

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Everything you've ever learned about growing your business is wrong.

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Don't worry.

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I'm here to let you in on a secret weapon,

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your position of market dominance. It's what sets you apart,

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makes you irreplaceable, and has customers lining up at your door.

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My name is Michael Barberrita from NeXTSTEP CFO. I know

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what you're thinking. Sounds great, Michael, How do I find

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my position of market dominance? Well, that's exactly why we

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created our game changing implementation program called next Step to

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00:20:04.000 --> 00:20:07.440
market dominance in just ninety days. We'll guide you step

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00:20:07.440 --> 00:20:10.480
by step to a position of market dominance by encovering

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your unique strengths that competitors can't touch, by crafting a

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message that resonates deeply with your ideal customer, by building

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a strategy that turns you into the go to.

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00:20:20.160 --> 00:20:22.839
Expert in your field. Now this is in theory.

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These are battle tested strategies that have helped businesses like

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00:20:26.480 --> 00:20:31.319
yours double, triple, and quadruple their revenue. Don't let another

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quarter go by struggling to standout. It's time to dominate

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00:20:34.759 --> 00:20:40.440
your market. Period. Go to NEXTSTEPCFO dot net forward slash contact.

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00:20:40.880 --> 00:20:43.720
Fill out the form and in the message section put

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00:20:43.759 --> 00:20:47.480
the word dominate or call us at seven eight one

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00:20:47.839 --> 00:20:51.720
three two six three A two two. That's next STEPCFO

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00:20:51.839 --> 00:20:55.200
dot net forward slash contact or call us at seven

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00:20:55.279 --> 00:21:00.440
eight one three two six three A two two back.

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00:21:01.119 --> 00:21:06.359
So now let's tackle the fifth major mistake costing businesses

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one hundred grand or more each year. And this one's

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kind of close to my heart because as a CFO

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as well as a strategic implementation strategist, not knowing your

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numbers is the mistake and it might seem basic, but

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if you'll be shocked how many successful looking businesses are

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flying blind when it comes to their finances. And let

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me also share this. When we survey business own owners,

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only fifteen percent can tell us what their gross profit

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00:21:35.880 --> 00:21:39.079
margin is off the top of their head. That's really

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really bad. By the way, only five percent know their

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customer acquisition cost, and fewer than five percent can tell

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us what the lifetime value of our customers. Yet these

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are the fundamental metrics that should be driving every business decision.

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So here's a startling example. We recently worked with a

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company that was spending twenty grand a month on a

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marketing camp campaign that they thought was working well. When

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we dug into those numbers, we discovered that they were

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spending three hundred and twenty dollars to acquire each customer,

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but the average initial purchase was only two hundred and

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eighty dollars. Well, at first glance, they're losing forty dollars

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on every new customer, and actually they're actually in this

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particular case, they're they're really losing more. Because you lose

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your gross you have to start with your gross profit

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00:22:26.119 --> 00:22:29.640
when you compare it to your customer acquisition costs. But

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the only way this could possibly make sense is that

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they had a clear understanding of their customer lifetime value

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and retention, which they did not. Let me give you

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a great personal example. So when I was in the

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frozen cookie dough business, the problem that the customer had

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was they didn't want to waste valuable oven space baking cookies.

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You're a pizza polla. You want to focus on the

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pizza in the oven, not cookies in the oven. So

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what we did to solve that problem is with each

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opening order, we gave them a free convection oven, which

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so they could bake the cookies and not utilize that

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valuable oven space. Oh boy, but here here are the metrics.

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The opening order of these companies averaged between fifty and

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one hundred dollars, while the convection oven, which I gave

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to them right up front, cost US two hundred dollars.

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So we had the same situation as the marketing company

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just described. However, we knew what the lifetime value of

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a customer was. It was five grand. So based on that,

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and we were confident in our product based on that,

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we'd do that all day long because we know that

355
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the customer would keep reordering, and that the bad to

356
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the customer was without weigh our initial investment in the

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convection of it up by a lot, by the way,

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So here's something you must do at a minimum. I

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know you all hate numbers, and I tell every business

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owner that they must know what I call the vital

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five numbers. Fiales second gross profit, third gross profit percentage,

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fourth net profit, and five your current cash balance. These

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00:24:33.640 --> 00:24:38.720
five numbers should be burning in your memory. You should

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know these numbers as well as you know your own birthday.

365
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And if you don't, you're making decisions based on guesswork

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rather than data. And let me put this in perspective.

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So imagine driving a car with a sphaenomenon. The fuel

368
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gauge and all of their instruments are completely covered up.

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Now you might be able to drive for a while,

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but eventually you're going to run out of gas, you

371
00:25:04.839 --> 00:25:08.160
get a speeding tech it or worse. And that's exactly

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what running a business without knowing your numbers is like.

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But knowing these basic numbers, this vital five, is just

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a starting point. But at least get those down. But

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to truly optimize your business, you need deeper financial clarity,

376
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and here's some of the key metrics every business should track.

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Number one is customer acquisition cost. If you watch Shock Tank,

378
00:25:32.160 --> 00:25:36.319
they're always asking what the customer acquisition cost is because

379
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it's a decision making metric. Second is the lifetime value

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of a customer. How much revenue does that customer average

381
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over a lifetime with you? And then there's a ratio

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00:25:49.960 --> 00:25:54.640
called lifetime value to divided by customer acquisition cost. It's

383
00:25:54.680 --> 00:26:00.559
called the LTVDAC ratio. Some people call it the LTV ratio.

384
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A healthy business typically has a long term value that's

385
00:26:05.720 --> 00:26:09.359
three times their customer acquisition costs, but it does vary

386
00:26:09.440 --> 00:26:14.440
between industries. Gross profit margins, So for every dollar of revenue,

387
00:26:14.680 --> 00:26:18.039
how much is left after the direct and variable costs

388
00:26:18.559 --> 00:26:23.000
of selling that product? Net profit margin? For every dollar

389
00:26:23.079 --> 00:26:28.440
of revenue, how much is left after all costs? Conversion rate?

390
00:26:29.039 --> 00:26:35.480
What percentage of leads become customers? Average transaction value how

391
00:26:35.559 --> 00:26:40.240
much does the average customer spend per purchase? And frequency

392
00:26:40.240 --> 00:26:44.279
of purchase? How often does the average customer buy from you?

393
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Getting a question from a listener there it is, Michael,

394
00:26:51.480 --> 00:26:54.519
This is a lot of numbers to track, but for

395
00:26:54.559 --> 00:27:00.319
a business owner who's currently tracking nothing, where should they start? Actually,

396
00:27:00.319 --> 00:27:02.720
should start by hiring us, because this is what we

397
00:27:02.759 --> 00:27:06.240
go over all of these numbers in our sessions. But

398
00:27:07.680 --> 00:27:12.559
generally start with that vital five no question, and then

399
00:27:12.799 --> 00:27:16.480
graduate to what I call the revenue triangle. That's your

400
00:27:16.519 --> 00:27:21.119
conversion rate, your average transaction value, and the frequency of purchase.

401
00:27:21.200 --> 00:27:25.039
These three numbers are easy to calculate, and understanding these

402
00:27:25.079 --> 00:27:29.960
three numbers will immediately show you where the biggest growth

403
00:27:30.079 --> 00:27:34.160
opportunity lies. You know, is it converting more leads? Is

404
00:27:34.200 --> 00:27:38.799
it increasing your average fail or getting customers to buy

405
00:27:38.920 --> 00:27:41.920
more frequently? The answer will tell you exactly where to

406
00:27:41.960 --> 00:27:46.240
focus first. And here's the thing. Small changes in these

407
00:27:46.319 --> 00:27:50.880
numbers can have a leveraging effect, a massive impact on

408
00:27:50.920 --> 00:27:53.240
your bottom line. And let me show you how that works.

409
00:27:53.240 --> 00:27:55.720
So stay the course with me on this because this

410
00:27:55.880 --> 00:28:01.000
is really vital. Let's say you have let's say hypothetical

411
00:28:01.039 --> 00:28:03.720
business has a twenty five percent conversion rate, So they

412
00:28:03.759 --> 00:28:06.519
have they have one thousand leads, that's two hundred and

413
00:28:06.599 --> 00:28:11.920
fifty new customer, an average transaction value of five hundred dollars,

414
00:28:12.359 --> 00:28:17.000
customers who buy two times per year for frequency, and

415
00:28:17.039 --> 00:28:19.480
you have that thousand leads that I mentioned, So your

416
00:28:19.480 --> 00:28:23.559
annual revenue would be one thousand leads times twenty five

417
00:28:23.559 --> 00:28:29.160
percent conversion times a five hundred dollars average sale times

418
00:28:29.200 --> 00:28:32.000
two purchases per year, it goes about two hundred and

419
00:28:32.000 --> 00:28:36.920
fifty grand. Now get this one, no, stay the course

420
00:28:36.960 --> 00:28:40.200
on this, because what happens if you improve each metric

421
00:28:40.279 --> 00:28:43.720
by just ten percent, So your conversion rate goes from

422
00:28:43.759 --> 00:28:46.200
twenty five percent to twenty seven and a half percent,

423
00:28:47.160 --> 00:28:50.759
Your average transaction with the customer goes from five hundred

424
00:28:50.799 --> 00:28:55.160
to five point fifty customers who will buy to point

425
00:28:55.200 --> 00:28:57.799
two instead of two, It goes up to two point

426
00:28:57.880 --> 00:29:00.519
two times per year. That's a ten percent increase of

427
00:29:00.640 --> 00:29:03.880
the two. And then it's eleven hundred leads per year

428
00:29:03.920 --> 00:29:07.440
instead of one thousand, once again a ten percent increase. Well,

429
00:29:07.480 --> 00:29:11.119
your new annual revenue would be eleven hundred leads times

430
00:29:11.119 --> 00:29:13.759
to twenty seven and a half percent conversion rate times

431
00:29:13.799 --> 00:29:16.440
a five hundred and fifty dollars average sale times two

432
00:29:16.519 --> 00:29:19.680
point two purchases a year. That equals three hundred and

433
00:29:19.720 --> 00:29:24.119
sixty eight thousand. That's a forty seven percent increase from

434
00:29:24.279 --> 00:29:29.400
just a ten percent improvement in those three areas. This

435
00:29:29.559 --> 00:29:33.240
is the power of understanding and leveraging your numbers. Not

436
00:29:33.319 --> 00:29:37.880
just knowing your numbers, but leveraging them. This is understanding

437
00:29:38.039 --> 00:29:42.920
the compound effect that's small incremental changes can have in

438
00:29:43.160 --> 00:29:46.240
just these few areas. But here's the thing. When you

439
00:29:46.359 --> 00:29:50.319
understand your numbers, you can make strategic decisions about way

440
00:29:50.359 --> 00:29:56.440
to invest your resources. So here's an example a service

441
00:29:56.480 --> 00:30:01.160
business that was considering two different growth strategies. One was

442
00:30:01.640 --> 00:30:06.160
increasing their marketing budget to get more leads, second investing

443
00:30:06.279 --> 00:30:10.160
in training to improve their conversion rate. And so when

444
00:30:10.160 --> 00:30:14.880
we analyze these numbers, we discovered that at one percent

445
00:30:14.960 --> 00:30:18.440
increase in the conversion rate would generate more revenue than

446
00:30:18.440 --> 00:30:21.400
a ten percent increase in leads, and at a fraction

447
00:30:21.480 --> 00:30:25.240
of the cost, And so the insight completely changed their

448
00:30:25.279 --> 00:30:29.960
growth strategy. Another critical number most businesses tracked is their

449
00:30:30.079 --> 00:30:33.680
sales per direct labor hour, and this is particularly important

450
00:30:33.720 --> 00:30:39.640
for service businesses and businesses in the grades. When we

451
00:30:39.720 --> 00:30:42.799
analyze where time is being spent in a business, we

452
00:30:42.920 --> 00:30:47.759
often find that certain services, clients, or activities actually losing

453
00:30:47.799 --> 00:30:51.079
money when you factor in the true cost of time.

454
00:30:52.839 --> 00:30:57.079
The roofing company offered three different service packages, and when

455
00:30:57.079 --> 00:31:00.240
they calculated their sales per hour for each package, we

456
00:31:00.319 --> 00:31:04.160
discovered that their entry level package, which they used primarily

457
00:31:04.200 --> 00:31:09.000
as a lead generator, was actually losing money. But slightly

458
00:31:09.039 --> 00:31:12.680
restructuring this package and raising its prices, they turned it

459
00:31:12.720 --> 00:31:17.559
from a money loser into and raising its price. They

460
00:31:17.599 --> 00:31:21.000
turned it from a money loser into a profit center

461
00:31:21.480 --> 00:31:25.519
while still maintaining its role as a lead generator. And

462
00:31:25.559 --> 00:31:28.960
this brings me to another crucial point about knowing your numbers.

463
00:31:29.599 --> 00:31:33.079
They tell you which clients, products or services you should

464
00:31:33.079 --> 00:31:36.720
focus on and which ones you should consider picking to

465
00:31:36.799 --> 00:31:41.000
the curb or eliminating. A retailer carried over two hundred

466
00:31:41.119 --> 00:31:47.039
different products. When she analyzed her profit her product she

467
00:31:47.200 --> 00:31:51.519
discovered that just thirty seven products generated eighty three percent

468
00:31:51.960 --> 00:31:55.680
of our profits. Many of the remaining products were either

469
00:31:55.880 --> 00:31:58.960
breaking even or losing money. And when you factor it

470
00:31:59.079 --> 00:32:03.559
in inventory cost, shelf space, and management time. By eliminating

471
00:32:03.559 --> 00:32:06.880
that bottom fifty percent of products and expanding the top performers,

472
00:32:07.160 --> 00:32:10.720
they increase their profits by forty percent without adding a

473
00:32:10.880 --> 00:32:18.319
single new customer. Got to know your numbers, There's a

474
00:32:18.400 --> 00:32:24.839
question from a listener, Michael. Many business owners find financial

475
00:32:24.920 --> 00:32:29.319
numbers intimidating. I agree, How can they overcome this fear

476
00:32:29.839 --> 00:32:34.200
and stop making data driven decisions. We'll start with what

477
00:32:34.240 --> 00:32:37.839
I call number one I'm sorry, what I call the

478
00:32:37.960 --> 00:32:41.640
one number challenge. So you pick just one metric. I

479
00:32:41.720 --> 00:32:47.160
recommend gross profit margin because it's really revealing. If you

480
00:32:47.319 --> 00:32:52.000
just track track that daily for two weeks, understand what

481
00:32:52.039 --> 00:32:55.519
your gross profit marget is on each sale for two weeks,

482
00:32:55.880 --> 00:33:00.000
just that single number every day, you'll quickly see patents patterns,

483
00:33:00.319 --> 00:33:04.400
you'll develop insights, and once you're comfortable with that, just

484
00:33:04.480 --> 00:33:09.839
add another metric. Soon you've developed this financial rhythm that

485
00:33:09.920 --> 00:33:15.680
becomes second nature. You've got to remember that financial clarity

486
00:33:16.559 --> 00:33:20.640
isn't about becoming an accountant. It's about having the data

487
00:33:20.720 --> 00:33:29.480
you need to make confident and strategic decisions. Another question.

488
00:33:31.880 --> 00:33:35.880
You mentioned the vital five numbers, but what about cash flow?

489
00:33:35.960 --> 00:33:38.480
How important is that for a small business? Well, it's critical.

490
00:33:39.400 --> 00:33:42.559
In fact, poor cash flow management kills more businesses than

491
00:33:42.640 --> 00:33:46.440
poor profitability. But that's why the current cash balance is

492
00:33:46.480 --> 00:33:50.839
one of your vital five. But beyond that, every business

493
00:33:50.839 --> 00:33:54.079
should have a thirteen week rolling cash flow forecast. And

494
00:33:54.119 --> 00:33:56.920
this is a week by week projection of your expected

495
00:33:56.960 --> 00:34:02.480
cash flows and outflows, sorry, expected inflows and outflows. And

496
00:34:02.640 --> 00:34:06.920
it gives you an early warning of potential cash crunches,

497
00:34:07.200 --> 00:34:09.880
and it allows you to take proactive steps. It gives

498
00:34:09.960 --> 00:34:12.880
you time to make those steps instead of to all

499
00:34:12.920 --> 00:34:15.400
of a sudden waking up one morning and you have

500
00:34:15.800 --> 00:34:18.079
nothing in the company bank account on Wednesday, in a

501
00:34:18.079 --> 00:34:22.000
payroll door on Friday. Got to remember, profit isn't the

502
00:34:22.039 --> 00:34:26.239
same as cash. Many profitable businesses have gone under because

503
00:34:26.280 --> 00:34:30.400
they ran out of cash. I always tell clients revenue

504
00:34:30.440 --> 00:34:39.079
is vanity, profit is sanity, but cash is reality. So

505
00:34:39.159 --> 00:34:41.480
before I continue the discussion, we're going to take a

506
00:34:41.559 --> 00:34:44.880
ninety second break. Hey, their business owners, let me ask

507
00:34:44.920 --> 00:34:48.400
you something. Are you tied of blending in with your competitors?

508
00:34:48.760 --> 00:34:51.440
Frustrated with slow growth and slim margins?

509
00:34:51.679 --> 00:34:53.079
Oh, I've gotten news for you.

510
00:34:53.760 --> 00:34:57.280
Everything you've ever learned about growing your business is wrong.

511
00:34:58.159 --> 00:34:58.840
Don't worry.

512
00:34:59.239 --> 00:35:01.159
I'm here to let you went on a secret weapon.

513
00:35:01.599 --> 00:35:05.159
Your position of market dominance. It's what sets you apart,

514
00:35:05.320 --> 00:35:09.119
makes you irreplaceable, and has customers lining up at your door.

515
00:35:10.119 --> 00:35:12.639
My name is Michael barber Rita from Next Step CFO.

516
00:35:13.679 --> 00:35:16.880
I know what you're thinking. Sounds great, Michael, how do

517
00:35:16.960 --> 00:35:20.719
I find my position of market dominance? Well, that's exactly

518
00:35:20.719 --> 00:35:24.519
why we've created our game changing impleitation program called Next

519
00:35:24.519 --> 00:35:28.039
Step to Market Dominance. In just ninety days, we'll guide

520
00:35:28.079 --> 00:35:30.519
you step by step to a position of market dominance

521
00:35:30.800 --> 00:35:34.559
by encovering your unique strengths that competitors can't touch, By

522
00:35:34.559 --> 00:35:37.840
crafting a message that resonates deeply with your ideal customer,

523
00:35:38.199 --> 00:35:41.079
by building a strategy that turns you into the go to.

524
00:35:41.159 --> 00:35:42.159
Expert in your field.

525
00:35:42.840 --> 00:35:46.280
Now this is in theory. These are battle tested strategies

526
00:35:46.320 --> 00:35:48.960
that have helped businesses like you as double, triple and

527
00:35:49.079 --> 00:35:53.719
quadruple their revenue. Don't let another quarter go by struggling

528
00:35:53.760 --> 00:35:58.239
to standout. It's time to dominate your market period. Go

529
00:35:58.280 --> 00:36:02.480
to NEXTSTEPCFO dot Nex forward slash Contact. Fill out the

530
00:36:02.559 --> 00:36:06.199
form and in the message section put the word dominate

531
00:36:06.639 --> 00:36:09.760
or call us at seven eighty one three two six

532
00:36:10.079 --> 00:36:13.800
three eight two two. That's next STEPCFO dot Net forward

533
00:36:13.840 --> 00:36:17.360
slash Contact or call us at seven eight one three

534
00:36:17.400 --> 00:36:21.719
two six three eight two two. Welcome back to powerful

535
00:36:21.760 --> 00:36:24.559
business Strategies, and once again, remember you can catch all

536
00:36:24.559 --> 00:36:28.800
of our replays at Powerful Business strategies dot com. So

537
00:36:28.880 --> 00:36:32.320
now let's explore the six major mistake that's causing businesses

538
00:36:32.320 --> 00:36:37.039
one hundred thousand dollars or more, and that is misunderstanding

539
00:36:37.639 --> 00:36:42.039
the buyer's journey. This mistake is so costly because you're

540
00:36:42.039 --> 00:36:44.280
missing out on ninety seven to ninety nine percent of

541
00:36:44.280 --> 00:36:47.840
your potential market. And here's that startling fact that most

542
00:36:47.920 --> 00:36:51.039
business owners don't realize at any given moment, in any market,

543
00:36:52.039 --> 00:36:55.159
at any time, only one to three percent and by

544
00:36:55.159 --> 00:36:57.840
the way, any industry, only one to three percent of

545
00:36:57.880 --> 00:37:02.599
your potential market is ready to buy. Now. Everybody's going

546
00:37:02.639 --> 00:37:06.000
after that one to three percent. We call these people

547
00:37:06.039 --> 00:37:09.559
the now buyers. The remaining ninety seven to ninety nine

548
00:37:09.599 --> 00:37:14.320
percent are somewhere in their journey. They're researching, they're considering

549
00:37:14.360 --> 00:37:17.440
their options, or maybe not even aware they have a

550
00:37:17.480 --> 00:37:20.639
problem yet until somebody makes them aware they have a problem.

551
00:37:20.800 --> 00:37:24.719
Think about that. But here's where most businesses go wrong,

552
00:37:24.880 --> 00:37:27.119
and I just said that earlier. They focus on their

553
00:37:27.360 --> 00:37:29.920
all their marketing efforts on capturing that one to three

554
00:37:29.920 --> 00:37:33.760
percent of now buyers, completely ignoring the ninety seven to

555
00:37:33.880 --> 00:37:36.840
ninety nine percent who will eventually buy, just not right now.

556
00:37:38.239 --> 00:37:41.840
So let me give you an example. All Improvement Company

557
00:37:41.880 --> 00:37:46.039
was spending thousands on direct response advertising with offers like

558
00:37:46.159 --> 00:37:48.800
call today for a free estimate, which, by the way,

559
00:37:49.800 --> 00:37:53.440
is I hope so marketing that everybody. Everybody says that,

560
00:37:54.320 --> 00:37:59.000
And this approach was targeting only those homeowners who were

561
00:37:59.039 --> 00:38:03.880
ready for a price right now, the now buyers. When

562
00:38:03.880 --> 00:38:07.320
she analyzed her market, she discovered that the average homeowner

563
00:38:08.239 --> 00:38:12.039
only does a major renovation every seven to ten years,

564
00:38:12.039 --> 00:38:15.679
and by focusing only on now buyers, they were ignoring

565
00:38:15.880 --> 00:38:19.880
ninety percent plus of their potential market. And so to

566
00:38:19.960 --> 00:38:22.760
understand why this is such a costing mistake, you need

567
00:38:22.800 --> 00:38:26.280
to understand the four stages of the buyer's journey. But

568
00:38:26.280 --> 00:38:30.079
it stops without awareness. The prospect realizes they have a

569
00:38:30.159 --> 00:38:34.199
problem or opportunity and they look at what's out there,

570
00:38:34.280 --> 00:38:39.280
so they're just really an investigation phase. Second is consideration,

571
00:38:39.519 --> 00:38:44.880
so the prospect begins researching potential solutions and asking themselves

572
00:38:45.920 --> 00:38:50.559
why they should buy, what are the benefits. That's the

573
00:38:50.599 --> 00:38:53.800
next step in this information gathering, this journey that buyers

574
00:38:53.800 --> 00:38:57.719
go down. Third is objections. Well, you know, the prospect

575
00:38:57.760 --> 00:39:04.119
evaluates specific objections and providers and starts thinking about what

576
00:39:04.159 --> 00:39:08.360
the objections are and why they shouldn't buy, and finally

577
00:39:08.719 --> 00:39:12.159
they're ready to take action. And the prospect not only

578
00:39:12.199 --> 00:39:16.320
makes a purchase decision, but they decide who they should

579
00:39:16.320 --> 00:39:20.960
buy from. And most businesses only market to prospects who

580
00:39:20.960 --> 00:39:22.920
are at the end of the journey. But by the

581
00:39:22.960 --> 00:39:28.119
time a prospect reaches these stages, they've already formed strong

582
00:39:28.199 --> 00:39:31.840
opinions and preferences. If you haven't been part of their

583
00:39:31.920 --> 00:39:34.920
journey from the beginning, you're going to be fighting an

584
00:39:35.000 --> 00:39:38.760
uphill battle. This is why understanding and marketing to all

585
00:39:38.840 --> 00:39:41.519
stages of the body's journey is so critical. And so

586
00:39:41.599 --> 00:39:44.079
let me show you how to do this effectively. So

587
00:39:44.159 --> 00:39:46.480
to do this effectively, you need to use what's called

588
00:39:46.559 --> 00:39:49.239
a drip campaign. Now a drip campaign. And by the way,

589
00:39:49.280 --> 00:39:51.280
there's a lot of people who are against all this,

590
00:39:52.559 --> 00:39:55.519
but we've seen this work time and time again. This

591
00:39:55.639 --> 00:39:59.159
is a very productive strategy. A drift campaign is an

592
00:39:59.199 --> 00:40:02.639
automated seat when it's evaluated, communication sent directly to the

593
00:40:02.679 --> 00:40:06.400
prospect or client or customer or patient. And the drift

594
00:40:06.440 --> 00:40:11.880
campaign follows the buyer's journey and communicates with customers or

595
00:40:11.920 --> 00:40:17.239
prospects on a predetermined and scheduled basis that nurses the

596
00:40:17.320 --> 00:40:20.840
relationship through the various stages of education to purchase the

597
00:40:20.880 --> 00:40:25.159
bias journey. So, now here's the most critical part. Your

598
00:40:25.199 --> 00:40:28.719
drift campaign needs to use the conversion formula throughout the

599
00:40:28.760 --> 00:40:33.679
campaign in order to get a faster decision and conversion

600
00:40:33.719 --> 00:40:36.559
from the prospect to be a customer. You see, what

601
00:40:36.599 --> 00:40:38.800
we found is that it takes up to one hundred

602
00:40:38.840 --> 00:40:41.880
touch points to convert someone to a customer while they're

603
00:40:41.920 --> 00:40:46.559
on the buyer's journey. But but if you use the

604
00:40:46.639 --> 00:40:49.880
conversion formula, which we've talked about time and time again

605
00:40:49.920 --> 00:40:53.960
in previous shows, and we have a show strictly dedicated

606
00:40:53.960 --> 00:40:57.760
to it, If you use a conversion formula in the

607
00:40:57.840 --> 00:41:01.280
drift campaign, eighty percent of the time the touch points

608
00:41:01.320 --> 00:41:05.880
reduced to between five and twelve touch points versus eighty

609
00:41:05.920 --> 00:41:09.679
to one hundred. So you must use the conversion formula.

610
00:41:10.119 --> 00:41:13.840
Captivate the problem the customer has doesn't want fascinate the

611
00:41:13.880 --> 00:41:17.760
solution they want they can't find, educate why your solution

612
00:41:17.960 --> 00:41:21.400
works so famously, and then close, I offer that's so

613
00:41:21.519 --> 00:41:26.000
compelling that they can't say no. For a question from

614
00:41:26.000 --> 00:41:29.159
a listener, Michael, this makes so much sense. But how

615
00:41:29.199 --> 00:41:34.960
can a small business with limited resources effectively market to

616
00:41:35.079 --> 00:41:40.639
all these stages? Well, simply setting up a drip campaign

617
00:41:40.679 --> 00:41:43.800
on a constant in constant contact or mail chip or

618
00:41:44.280 --> 00:41:47.920
any other mailing platform that can give you the metrics

619
00:41:47.960 --> 00:41:50.679
that you need, like open rates and click through rates

620
00:41:50.679 --> 00:41:53.840
and those types of things. It's very cost effective. It

621
00:41:53.920 --> 00:41:57.199
is the messaging that's important, and using the conversion formula

622
00:41:57.559 --> 00:42:02.880
will give you the right messaging. In addition, by the way,

623
00:42:03.679 --> 00:42:06.840
one of the most powerful tools for capturing prospects early

624
00:42:06.880 --> 00:42:11.159
in their buyer's journey is generating a lead magnet. So

625
00:42:11.199 --> 00:42:14.159
a lead magnet is a valuable piece of information that

626
00:42:14.199 --> 00:42:18.079
you'll offer for free in exchange for their contact information,

627
00:42:18.159 --> 00:42:21.280
and this allows you to begin building a relationship with

628
00:42:21.400 --> 00:42:26.239
prospects long before they're ready to buy. For example, that

629
00:42:26.400 --> 00:42:30.039
of the home improvement company I spoke of earlier created

630
00:42:30.079 --> 00:42:35.079
a guide called seven critical Mistakes to avoid when planning

631
00:42:35.079 --> 00:42:38.719
your home renovation. This resource was valuable the homeowners in

632
00:42:38.760 --> 00:42:42.320
the early stages of thinking about a renovation. No they

633
00:42:42.360 --> 00:42:46.280
weren't ready to buy now, but became part of their

634
00:42:46.599 --> 00:42:50.880
knowledge base and research base. The awareness and consideration stages

635
00:42:50.880 --> 00:42:54.079
of the buyer's journey and by capturing these prospects early,

636
00:42:54.800 --> 00:43:00.400
they were able to nurture the relationship until the inspect

637
00:43:00.440 --> 00:43:04.239
was ready to move forward with a project. And so

638
00:43:04.360 --> 00:43:06.800
let me share a case study that shows the power

639
00:43:07.440 --> 00:43:11.679
this approach to A B to B software company was

640
00:43:11.719 --> 00:43:15.800
spending ten grand a month on Google ads targeting now buyers.

641
00:43:16.280 --> 00:43:20.880
Their conversion rate from an ad click to sale was

642
00:43:21.000 --> 00:43:24.960
about a half of a percent, meaning that ninety nine

643
00:43:25.000 --> 00:43:27.599
and a half percent of their ad spend was generating

644
00:43:27.639 --> 00:43:32.320
clicks but no immediate sales. When they implemented a comprehensive

645
00:43:32.480 --> 00:43:35.679
lead magnet and a drip campaign strategy to go along

646
00:43:35.719 --> 00:43:39.280
with it, using the conversion formula, they were able to

647
00:43:39.320 --> 00:43:43.719
capture contact information from fifteen percent of those ad clicks,

648
00:43:43.719 --> 00:43:46.239
and over the next twelve months, their drip can campaign

649
00:43:46.800 --> 00:43:51.360
converted twenty percent of those leads into customers. This increased

650
00:43:51.400 --> 00:43:54.320
their overall conversion rate from half a percent to three

651
00:43:54.400 --> 00:43:57.679
and a half percent, which is a six hundred percent

652
00:43:57.760 --> 00:44:03.159
improvement without spending at this without spending an additional penny

653
00:44:03.159 --> 00:44:07.559
on advertising. And here's what makes drift campaign so effective.

654
00:44:08.239 --> 00:44:12.000
They establish you as a trusted advisor early in the

655
00:44:12.039 --> 00:44:15.599
buyer's journey. They allow you to stay top of mind

656
00:44:15.760 --> 00:44:19.559
until the prospect is ready to buy. They educate prospects

657
00:44:19.599 --> 00:44:26.000
on the value you provide, They frame the buying criteria

658
00:44:26.119 --> 00:44:29.719
in your favor, and they position you as the logical

659
00:44:29.840 --> 00:44:33.920
choice when the prospect is ready to buy. But here's

660
00:44:33.960 --> 00:44:38.400
where most businesses go wrong with their drift campaigns. They

661
00:44:38.400 --> 00:44:42.440
make them two sales focused. Effective drift campaigns to be

662
00:44:42.480 --> 00:44:47.199
eighty percent education twenty percent promotion, and they should provide

663
00:44:47.440 --> 00:44:51.159
genuine value at each stage of the journey. And remember,

664
00:44:51.199 --> 00:44:54.440
if you use the conversion formula by Osmosis, you should

665
00:44:54.440 --> 00:44:59.880
be able to accomplish those percentages. Another question from a

666
00:45:00.039 --> 00:45:05.000
a listener, UH, Michael, you mentioned the importance of capturing

667
00:45:05.039 --> 00:45:09.000
prospects early in their buyer's journey. What types of lead

668
00:45:09.119 --> 00:45:12.400
magnets work best for small business as well? That's a

669
00:45:12.639 --> 00:45:18.360
that's a good question. The most effective lead magnets directly

670
00:45:18.400 --> 00:45:23.760
address a specific problem your ideal client's face. You notice

671
00:45:23.800 --> 00:45:27.280
a pattern and identifying that the problem the customer has

672
00:45:27.440 --> 00:45:30.800
doesn't want throughout these series of shows, and and and

673
00:45:30.840 --> 00:45:34.960
even even in this UH discussion that we're having today,

674
00:45:35.880 --> 00:45:38.960
they should be quick to consume these these lead magnets,

675
00:45:38.960 --> 00:45:44.360
but provide a meaningful solution or insight for service businesses.

676
00:45:44.400 --> 00:45:47.880
I recommend we call the perfect lead magnet magnet formula.

677
00:45:47.960 --> 00:45:51.559
So you identify the biggest mistake your prospects make, create

678
00:45:51.599 --> 00:45:53.599
a guide on how to avoid it, and offer it

679
00:45:53.639 --> 00:45:56.800
for free. For example. This is really this is something

680
00:45:56.800 --> 00:46:01.039
that's worked very effectively the five costly this mistakes business

681
00:46:01.039 --> 00:46:03.559
owners make when selling their company. That's just one example.

682
00:46:04.079 --> 00:46:07.639
This type of lead bad magnet not only attracts prospects

683
00:46:07.880 --> 00:46:15.760
but also preframes them to value your expertise. Another question,

684
00:46:17.519 --> 00:46:20.199
can you review the conversion formula again? Well, that's a

685
00:46:20.199 --> 00:46:23.199
great question. By the way, we have an entire show

686
00:46:23.280 --> 00:46:27.559
on the conversion formula at Powerful Business Strategies dot com.

687
00:46:27.719 --> 00:46:31.239
But here's the cliff notes version. The key to successful

688
00:46:31.280 --> 00:46:33.000
marketing is you have to get into the minds of

689
00:46:33.000 --> 00:46:35.440
your prospects. How do you do that? We'll not mind meetings.

690
00:46:35.840 --> 00:46:38.199
So getting into the mind of your prospects is based

691
00:46:38.239 --> 00:46:41.039
on two emotional issues. That's the problem they have they

692
00:46:41.039 --> 00:46:43.840
don't want, and a solution they want they can't find.

693
00:46:44.480 --> 00:46:47.480
If you accomplish that, you get into the mind of

694
00:46:47.599 --> 00:46:51.559
your prospect So we created the conversion formula, which is

695
00:46:51.599 --> 00:46:54.280
a formula that has to be done in the exact

696
00:46:54.400 --> 00:46:57.079
order or it doesn't work. For example, water, as we

697
00:46:57.159 --> 00:47:00.880
all know, the formula is H two oh pot's hydrogen

698
00:47:01.280 --> 00:47:04.519
one pot oxygen. If you have one pot hydrogen and

699
00:47:04.599 --> 00:47:07.679
one pot oxygen, you don't have water. So, like any

700
00:47:07.760 --> 00:47:10.480
other formula, the conversion formula has to be followed in

701
00:47:10.480 --> 00:47:13.599
the exact order, and it starts with to captivate, which

702
00:47:13.639 --> 00:47:15.880
is the problem that the customer has. It doesn't want.

703
00:47:16.199 --> 00:47:19.719
It's usually a problem or frustration they have with the industry.

704
00:47:20.119 --> 00:47:23.679
Look there. First, there's a systematic way that that we

705
00:47:23.760 --> 00:47:26.840
use to identify this problem by the way. Next step

706
00:47:26.920 --> 00:47:31.039
is in the formula is captivate, where we identify the

707
00:47:31.119 --> 00:47:34.039
unique solution to the problem that they can't find. Next

708
00:47:34.039 --> 00:47:36.719
step is educate, where we now educate the prospect on

709
00:47:36.760 --> 00:47:40.400
how the solution works and why it's so effective. And

710
00:47:40.440 --> 00:47:43.400
then the final step, which is an offer that has

711
00:47:43.440 --> 00:47:46.400
to be so compelling that the prospect can turn it down.

712
00:47:46.679 --> 00:47:48.960
We have a whole show on what makes up a

713
00:47:49.000 --> 00:47:53.119
compelling offer. So before I continue this discussion, we're going

714
00:47:53.159 --> 00:47:56.440
to take a quick ninety second break. Hey, their business owners.

715
00:47:56.519 --> 00:47:59.159
Let me ask you something. Are you tied of blending

716
00:47:59.199 --> 00:48:03.559
in with your editors, frustrated with slow growth and slim margins.

717
00:48:03.719 --> 00:48:05.159
Well, I've got news for you.

718
00:48:05.840 --> 00:48:09.320
Everything you've ever learned about growing your business is wrong.

719
00:48:10.239 --> 00:48:10.880
Don't worry.

720
00:48:11.320 --> 00:48:13.239
I'm here to let you in on a secret weapon,

721
00:48:13.679 --> 00:48:17.239
your position of market dominance. It's what sets you apart,

722
00:48:17.360 --> 00:48:21.159
makes you irreplaceable, and has customers lining up at your door.

723
00:48:22.199 --> 00:48:24.719
My name is Michael Barber Rita from Next Step CFO.

724
00:48:25.719 --> 00:48:28.960
I know what you're thinking. Sounds great, Michael, How do

725
00:48:29.039 --> 00:48:32.719
I find my position of market dominance? Well, that's exactly

726
00:48:32.800 --> 00:48:36.519
why we've created our game changing implementation program called Next

727
00:48:36.599 --> 00:48:40.119
Step to Market Dominance. In just ninety days, we'll guide

728
00:48:40.119 --> 00:48:42.599
you step by step to a position of market dominance

729
00:48:42.840 --> 00:48:46.639
by uncovering your unique strengths that competitors can't touch, by

730
00:48:46.639 --> 00:48:49.920
crafting a message that resonates deeply with your ideal customer,

731
00:48:50.280 --> 00:48:52.920
by building a strategy that turns you into the go

732
00:48:52.960 --> 00:48:54.199
to expert in your field.

733
00:48:54.920 --> 00:48:55.960
Now this is in theory.

734
00:48:56.559 --> 00:48:59.400
These are battle tests and strategies that have helped businesses

735
00:48:59.480 --> 00:49:03.840
like you as double, triple, and quadruple their revenue. Don't

736
00:49:03.920 --> 00:49:06.760
let another quarter go by struggling to stand out, It's

737
00:49:06.800 --> 00:49:11.920
time to dominate your market period. Go to NEXTSTEPCFO dot

738
00:49:12.000 --> 00:49:15.440
net forward slash contact. Fill out the form and in

739
00:49:15.480 --> 00:49:19.360
the message section put the word dominate or call us

740
00:49:19.559 --> 00:49:23.039
at seven eight one three two six three A two two.

741
00:49:23.519 --> 00:49:27.480
That's next STEPCFO dot net forward slash contact or call

742
00:49:27.599 --> 00:49:30.760
us at seven eight one three two six three A

743
00:49:30.920 --> 00:49:34.719
two two. Welcome back to powerful business strategies. And as

744
00:49:34.719 --> 00:49:37.320
we wrap up today's show, let's summarize the one hundred thousand

745
00:49:37.360 --> 00:49:39.599
dollars mistakes that we uncovered in the second part of

746
00:49:39.639 --> 00:49:42.679
our series, and more importantly, the solutions that can transform

747
00:49:42.760 --> 00:49:47.159
these costly mistakes into profit opportunities. First, we discuss the

748
00:49:47.199 --> 00:49:51.800
expensive mistake of undervaluing yourself and your services. Remember, customers

749
00:49:51.840 --> 00:49:54.320
don't say no to you, they say no to themselves.

750
00:49:54.599 --> 00:49:58.519
People only say yes when the value they perceive exceeds

751
00:49:58.679 --> 00:50:02.639
the price they're paying. By building value before presenting price,

752
00:50:02.760 --> 00:50:05.920
implementing tiered pricing options, and focusing on the outcomes you

753
00:50:05.960 --> 00:50:08.840
deliver rather than the time you spend, you can significantly

754
00:50:08.880 --> 00:50:12.519
increase your prices while actually improving your closing rate. Second,

755
00:50:12.559 --> 00:50:17.239
we uncovered how not knowing your numbers is silently draining

756
00:50:17.440 --> 00:50:20.599
profits from your business. Remember your vital five. Every business

757
00:50:20.679 --> 00:50:24.480
owner must know fales, gross profit, gross profit percent, net profit,

758
00:50:24.519 --> 00:50:29.079
and your current cash balance. Beyond these basics, understanding metrics

759
00:50:29.119 --> 00:50:33.039
like customer acquisition costs and lifetime value and your revenue triangle,

760
00:50:33.159 --> 00:50:37.360
the conversion rate, average transaction value, frequency of purchase. This

761
00:50:37.400 --> 00:50:41.280
gives you the insights you need to make data driven decisions. Third,

762
00:50:41.480 --> 00:50:46.920
we tackle the most costly mistake of misunderstanding the buyer's journey. Remember,

763
00:50:46.960 --> 00:50:49.360
only one to three percent of your potential market is

764
00:50:49.400 --> 00:50:53.000
ready to buy now. By creating marketing strategies that capture

765
00:50:53.079 --> 00:50:56.960
prospect every stage of their journey, can build relationships with

766
00:50:57.000 --> 00:51:00.239
a ninety seven ninety nine percent who will eventually by

767
00:51:00.880 --> 00:51:03.760
use lead magnets and drip campaigns to let you do this.

768
00:51:05.800 --> 00:51:08.519
To get a copy of the book Powerful Business Strategy,

769
00:51:08.599 --> 00:51:12.679
simply go to our website www dot NEXTSTEPCFO dot net.

770
00:51:12.960 --> 00:51:16.320
It's totally complementary and until next Monday at noon Eastern time.

771
00:51:16.960 --> 00:51:19.920
But chuky obio. My name is Michael Barberita, and remember,

772
00:51:20.559 --> 00:51:23.960
don't keep doing what your competition is doing.

773
00:51:25.880 --> 00:51:28.960
You have been listening to Powerful Business strategies finding out

774
00:51:28.960 --> 00:51:32.639
that everything you ever learned about growing your business is wrong.

775
00:51:32.920 --> 00:51:36.119
Tune in next week and every week at noon Eastern

776
00:51:36.199 --> 00:51:39.639
time on w four CY Radio with your host Michael

777
00:51:39.679 --> 00:51:44.280
Barberita of Next Step CFO and moderator chugy Obio